SingPost's H2 net profit falls 55.7% to S$16.7m on pandemic-related costs

[The_King]

SINGAPORE Post (SingPost) on Thursday posted net profit of S$16.7 million for the second half of the fiscal year ended March, down 55.7 per cent from S$37.7 million for H2 FY2020.

In its results filing before the market opened, the group attributed the bottom-line decline mainly to higher costs incurred as a result of the Covid-19 pandemic.

The latest H2 figures brings the group's earnings for the full year to S$47.6 million, down 47.7 per cent from FY2020 net profit of S$91.1 million.

Revenue for H2 grew 4.3 per cent to S$696.9 million from S$668.1 million a year ago, led by strong e-commerce volume growth in both the logistics as well as domestic post and parcel segments.

 

In the post and parcel segment, revenue declined 10.1 per cent to S$350.2 million as international post and parcel volumes continued to be impacted by the constraints on air capacity in and out of Changi Airport. This resulted in significantly higher conveyance costs with substantial reductions in margins for the segment.

 

While the domestic post and parcel business recorded significant volume and revenue growth on higher e-commerce adoption, SingPost noted that higher costs were also incurred due to health and safety arrangements for Covid-19.

Revenue in the logistics segment rose 26.6 per cent for the half year, bringing its profit on operating activities to S$5.6 million as all entities benefited from the accelerated adoption of e-commerce activities.

The property segment saw a slight 1.6 per cent dip in H2 revenue to S$59.9 million largely due to lower receipts from car park and atrium sales for the group's SingPost Centre mall.

The group's total exceptional losses in H2 amounted to S$12 million. This was largely attributed to fair value losses on investment properties and on a put option of an indirect subsidiary; professional fees relating to the strategic activities of the group; and an impairment recorded on some of CourierPlease's assets due to obsolescence.

Excluding exceptional items, the group's underlying net profit for the half year declined 40.1 per cent to S$28.6 million from S$47.8 million previously.

Its board of directors is proposing a final dividend of 0.6 Singapore cent per ordinary share, from a 1.7 cent final dividend issued for the same period last year. This would bring the annual dividend for the financial year to 1.1 cent per share, compared to FY2020's dividend of 2.7 cents.

SingPost said it will continue to carefully manage expenses, cash flow and liquidity to help fund its transformation initiatives for the longer term, although it expects the performance in certain business segments to remain "affected by factors beyond its control".

"As the pandemic continues to create disruptions across the global economy, SingPost is actively adapting measures to navigate the current environment, including seeking new e-commerce growth opportunities in Singapore, Australia and the Asia-Pacific region," it said.

Shares of SingPost were trading half a Singapore cent or 0.7 per cent higher at 76 cents as at 9.40am, after the results were announced.

 

https://www.businesstimes.com.sg/companies-markets/singposts-h2-net-profit-falls-557-to-s167m-on-pandemic-related-costs

[The_King]

nowaday there so many delivery for ordering for ecom and yet they cant earn.

 

something is wrong with their way of doing business 

[Huat Zai]

3 hours ago, The_King said:

nowaday there so many delivery for ordering for ecom and yet they cant earn.

 

something is wrong with their way of doing business 

Temasek standard, nothing to see here, no blame culture.

[aaur4man]

On 5/6/2021 at 1:16 PM, The_King said:

nowaday there so many delivery for ordering for ecom and yet they cant earn.

 

something is wrong with their way of doing business 

 

because they losing out to competition. see shoppee damn fierce

 

I order one cheap phone, sent by speed post by next day. I think their speed post price maybe slash also if not cant get business

Edited May 8, 2021 by aaur4man

[socrates469bc]

but dhl and ups making record profits mean what?????

 

https://www.dpdhl.com/en/media-relations/press-releases/2021/strongest-first-quarter-ever-preliminary-results-of-deutsche-post-dhl-group-above-market-expectations.html#:~:text=Group EBIT for 2021 is,more than EUR 4.5 billion).

 

https://www.cnbc.com/2021/04/27/united-parcel-service-ups-q1-2021-earnings.html

[socrates469bc]

1 hour ago, aaur4man said:

 

because they losing out to competition. see shoppee damn fierce

 

I order one cheap phone, sent by speed post by next day. I think their speed post price maybe slash also if not cant get business

 

yeah, i order from shopee and usually received it next day from local sellers.

 

the fastest shopee order was my oral b electric, ordered midnite and received it ard 6pm same day.

Edited May 8, 2021 by socrates469bc

[Homelander]

Can send umbrage ng over here!

[Huat Zai]

9 minutes ago, Homelander said:

Can send umbrage ng over here!

knn, can don't turn all our CPF into non-profit or not?

[socrates469bc]

23 minutes ago, Homelander said:

Can send umbrage ng over here!

 

kor kor see General umbrage bui bui ng no up????

 

send him there is big wood small use.

 

the next glc to send him to fix is this one.

 

tiagong he is super good at setting up reits so keppel is a good fit for him.

 

[XianGe]

On 5/6/2021 at 1:16 PM, The_King said:

nowaday there so many delivery for ordering for ecom and yet they cant earn.

 

something is wrong with their way of doing business 

Ya something very wrong... So many ppl order online yet they can loss... Paid too much to the senior Mgmt ar

[aaur4man]

On 5/6/2021 at 1:16 PM, The_King said:

nowaday there so many delivery for ordering for ecom and yet they cant earn.

 

something is wrong with their way of doing business 

 

56 minutes ago, XianGe said:

Ya something very wrong... So many ppl order online yet they can loss... Paid too much to the senior Mgmt ar

 

not sent by singpost what. shopee all do themselves. with ninjavan leading ahead.

 

their crappy service how to compete. ur parcel lost by a cheap delivery vs lost by expensive delivery, u choose which one

 

pay so much for lanjiao registered mail end up always have to go post office queue the fucking hours to collect. some more must rush like dog before it close.

 

and nowadays not many parcels go missing anymore, just small percentage. same comparison cheaper better faster, choose which one.

 

do you realise nowadays delivery is

REGISTERED BY DEFAULT. 

Edited May 12, 2021 by aaur4man

[XianGe]

3 hours ago, aaur4man said:

 

 

not sent by singpost what. shopee all do themselves. with ninjavan leading ahead.

 

their crappy service how to compete. ur parcel lost by a cheap delivery vs lost by expensive delivery, u choose which one

 

pay so much for lanjiao registered mail end up always have to go post office queue the fucking hours to collect. some more must rush like dog before it close.

 

and nowadays not many parcels go missing anymore, just small percentage. same comparison cheaper better faster, choose which one.

 

do you realise nowadays delivery is

REGISTERED BY DEFAULT. 

Speedpost ish sub of singpost yet lose $$$ is big question liao

[The_King]

They should ask themselves they use to have so much parcel and should have the volume advantage

 

And they lost to new players in the market

[socrates469bc]

30 minutes ago, XianGe said:

Speedpost ish sub of singpost yet lose $$$ is big question liao

 

usually means duplications in operation which result in wastage.

 

this sort of cleanup very easy to do one.

 

the most sakti wastage i seen recently is the bolehsia navy shipbuilding program.

 

pay almost myr6bln liao but not a single ship commissioned.

 

https://www.theedgemarkets.com/article/turkey-year-more-delays-costly-combat-ship-programme